China’s economy could grow by 10.9% in 2007

BEIJING: China's economy could grow by 10.9 percent in 2007, up from 10.7 percent last year, according to a study quoted in state press Saturday that will increase concerns about overheating.

The Chinese Academy of Social Sciences forecast follows official figures released Thursday showing growth of 11.1 percent in the first quarter, despite efforts to slow the economy.

Investors and analysts expect further measures to put the brakes on China's economic engine, such as an interest rate hike. But they are not sure whether the plans will work.

As in the past, the authorities have set a target of eight percent growth in gross domestic product, which international organisations including the World Bank say is almost certain to be exceeded this year.

The World Bank forecasts the rate of growth will shrink to 10 percent in 2007 before a sharper slowdown in 2008, due to strict measures adopted by Beijing. afp